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TRANSCRIPT
Mobile Money Contributing
Towards Global M-Commerce
15th September 2015
Topyster Muga: Head of Airtel Money, Airtel Networks Kenya Limited
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What is M-Commerce? • Business that is conducted on the internet t
hrough the use of cellphones or other wirel
ess, handheld electronic devices.
• Mobile commerce, or m-commerce, gives
consumers the ability to purchase products
in a virtual retail space on their
smartphones, tablets, and other mobile
devices
• Mobile commerce services were first
delivered in 1997, when the first two
mobile-phone enabled Coca Cola vending
machines were installed in the Helsinki area
in Finland. The machines accepted payment
via SMS text messages.
More than half of the 255 mobile money deployments are in sub-Saharan Africa
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Source: http://www.gsma.com/mobilefordevelopment/state-of-the-industry-2014
For example, Airtel has deployed Airtel Money in 17 African countries
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Zambia
• Sep 2011
Kenya
• Aug 2011
Seychelles
• May 2015
Madagascar
• Jul 2012
Uganda
• Jan 2012
Malawi
• Feb 2012
DR Congo
• Mar 2012
Chad
• Jun 2012
Rwanda
• May 2013
Congo B
• May 2012
Gabon
• Mar 2012
Nigeria
• Nov 2014
Niger
• May 2012
Burkina Faso
• July 2012
Ghana
• Dec 2011
Sierra Leone
• June 2012
Tanzania
• Dec 2011
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Last December, the mobile money transaction value was $16.3B, through 717M transactions
Source: http://www.gsma.com/mobilefordevelopment/state-of-the-industry-2014
Only 23.4% of $16.3B of Transaction Value in Dec 2014 Huge Opportunity Lies in Business to Consumer(B2C) and Consumer to Business(C2B) Payments:
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Source: http://www.gsma.com/mobilefordevelopment/state-of-the-industry-2014
Businesses play a big part in funding the mobile money account
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Via Agent
Via P2P
Transfer
Via Bank
Via
Business
Salaries, wages, allowances
Organizations and government institutions disbursing funds through the mobile
Consum
er
Business/Organization
Farmers
Salaries to government employees
Government Soldiers Teachers
Construction
Workers
Case Study: Over 90% cost reduction in funds disbursement
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Source: Accenture Report: PACT Kenya Case Study
Case Study:
Salary Payment in Cash
• Finance Staff allowance(3 days):Kshs.6,000
• Vehicle Hire:Kshs.7,000 / day
• Fuel Kshs:12,000
• Accommodation:Kshs.7,500
• Total Cash Disbursement Costs: Ksh.46,500
Salary Payment using Mobile Money
• Transaction Fees of Kshs.75/transaction, for 50
participants Kshs.3,750
Source: Accenture report; PACT Kenya
Huge opportunity for consumer to business face to face or remote payments
Consum
er
Consumer Business
Retailer(FMCG)
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Over 38%
increase
in
revenue
collection
Source: The Citizen Newspaper Tanzania
http://www.thecitizen.co.tz/News/Dawasco-hails-M-Pesa-billing/-/1840392/1910782/-/7emg2u/-/index.html
Water Bill Revenue Collection
Before Mobile Money : Tshs.2.6b per month
After Mobile Money: Tshs.3.6b per month
Benefits
• Over 38% increase in revenue collection
• Less travel/queueing by customers hence better
customer experience.
Case Study: Tanzania Water Revenue Collection
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https://www.youtube.com/watch?v=vfWOQL7Wl2w
Views around Africa on building the M-Commerce ecosystem